Paraguay to cut tariffs on 14 Taiwanese products

2018/06/13 22:55:01

CNA file photo

Taipei, June 13 (CNA) Paraguay has agreed to reduce tariffs on 14 categories of Taiwanese products, in the follow-up to a bilateral economic agreement signed last year, Taiwan's Ministry of Economic Affairs (MOEA) said Wednesday.

The products, including rice vermicelli, woven fabric products, knitwear and handbags, will be subject to lower tariffs than those applied in the South American common market, also known as Mercosur, the ministry said.

The preferential treatment was granted Tuesday in Taipei during a joint committee meeting to review the implementation of the Taiwan-Paraguay Economic Cooperation Agreement, which was signed on July 12, 2017, and took effect on February 28 this year.

During the meeting, Taiwan also agreed to remove or reduce tariffs on 31 categories of Paraguayan products, including pork tendons and mate tea, immediately or in phases, the MOEA said.

For example, it said, imports of up to 60,000 tons of cane sugar per year from Paraguay will be exempt from tariffs.

The ministry said Taiwan has also agreed to help promote the development of micro, small and medium enterprises in Paraguay, as well as sales of mate tea and the transfer of related techniques.

The preferential terms adopted during Tuesday's meeting will take effect 30 days after the relevant procedures have been completed in both countries, the ministry said.

Economic ties between Taiwan and Paraguay, its sole diplomatic ally in South America, have been expanding in recent years, with bilateral trade increasing by an annual 59 percent in 2017 to US$75 million, according to data from Taiwan's Bureau of Foreign Trade.